To Clear my morgage or not

locka

Hi to all MSE regulars ,

I'm one of the lucky few who was able to by there house back 1999 when house prices where much more affordable, have a fairly large deposit so I have end up with only a small mortgage around £30.000 when I started. Over the years I've mostly only paid the correct amount each month, really only ever made one medium over payment

I have a total of 9 years and 4 months left of my mortgage and around £12,560 to pay currently I'm paying 2% interest around £121.08 a month. I currently have £25,000 in the bank but here comes the really bad part no sort of pension. Hence the reason for saving money. Now I could potentially pay of the mortgage now and still be left 1/2 the money in savings or keep on pay the mortgage. I turned 40 last year and I realise the pension issue is a biggie But on the other hand I'm not as in debt as some people.

Staring Mortgage: £30,000
Current Mortgage:£12,260
Monthly Payments:£121
Remaining Term: 9 years 4 months
Credit: £25,000

Some advice please is it worth me paying of the mortgage change mortgage provider or should look to use the money towards my pension?

Luckyinlife

All down to personal preference i guess

personally i would pay it off and then just save for the pension add what ever your mortgage payments are to what you save monthly then least every penny is going towards your retirement

you could however put the 12k into high interest account and maby make a bit more on it but how much i dont know ?

My aim is to pay off the mortgage as soon as i can then start saving for the pension this isnt for everyone but its what i feel comfortable doing but this may change as i get only late 20s now

locka

some of it already in some ISA and has been all the way through my savings carer. In the earlier days I was a contractor which is why it was keeping money buy. Nowadays I'm permanent, in the public sector so much more safe. I stupidly opted out of the there pension as at the time i was not thinking I would be there that long

Seanymph

opt in then.

Never to late to start - then you will be doing both, saving for your pension AND paying off your mortgage.